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Australia is the most franchised nation (per head of population) in the world and franchising your business can be a very successful way of expanding. However it’s important to correctly develop and test business concepts before considering a full franchise system.

Why Franchise Your Business?

The reasons why people are interested in setting up a franchise include:

Network growth of an already established business using the franchisees manpower and finances

Not having to worry about each locations operations on a day to day basis. The franchisee is a motivated business owner wanting to ensure the best outcome for their franchise

Franchisor can earn a clip of the sales through the expanding franchise network

Ability to service customers nationally where required

Franchisor requires less capital to expand the business

As a franchisor you are required to comply with legal requirements in establishing the system and ensure that all controls, systems, processes and procedures are in place to enable a franchisee to be as successful as possible. Further your business should be able to demonstrate that it is successful and profitable as the “template” for all other franchisees.

The Franchise System

A franchise system cannot be setup overnight – typically from the initial concept to offering the franchise system to the market can take up to 3 years. The following factors need to be considered during the process:

Business branding must be put in place

Franchise Agreement to be documented by Solicitor

Write an operations manual

Develop training systems

Develop marketing and advertising for the business

Continually apply best practice to the operations of the business

Ensure you have enough capital to fund these upfront costs

Franchising is a very rewarding experience both personally and financially. As experts in the field of franchising, both at the level of head franchisor and franchisee, MSI Global Alliance has experience in dealing with both sides of the Franchise equation, giving us unique insights into the operations and conduct of the franchise system.